economy - All posts tagged economy

As a long-term investor in stocks like Apple, Google, Facebook, Sandisk and so on, I would probably look to start to scale into some of my favorite such Revolution Investing names on an opportunistic basis. I’ve also trimmed most of my personal positions so a major Greece/EU crisis-driven sell off would enable me to buy some of those shares back.

Hurricane Sandy is not a “Broken Window” phenomenon. Yes, it was destructive and that is always a negative. And yes, there’s been a few billion dollars worth of retail and other business lost over the last few days. But that demand will be right back where it was and will have some pent up excess to it for the next few weeks after life returns back to some semblance of normalcy for the affected parts of the country. And there will indeed be tens of billions, probably more than a hundred billion dollars, worth of new demand for construction materials, services, supplies, workers, and so on for the next couple years as a result of the rebuilding process that we’re about to undertake.

A. I think we’re likely seeing the markets try to break out here. I do think it’s possible we go into an outright stock market bubble in coming quarters, but it won’t be obvious and it won’t be easy getting there. And of course, we could also crash as this bear market rally fizzles out as you surmise. Again, it’s better to have just bought Apple at $7 or Google at $95 or F5 at $20 or Nuance at $12 than it is to try to game whether the broader markets are going to bubble or crash. The good stocks and great investments will work out over time.

But while the mainstream media and the elites it covers try to convince themselves that there’s been some sort of “progress” on figuring out who’s grandchildren will be paying the most for today’s free money, I still think that they’ve already passed the point of no return for finding a multi-trillion dollar gimmick. A month or two ago, the markets and the prices for the bailouts were much more friendly (though to be clear, there’s NEVER a good reason or good time to bailout anybody or any company or any system).

Don’t lose your ability to recognize capitalism’s face when you see it. It looks to be returning and soon. And you know the playbook ahead of time — and that playbook is basically a perfect “Flip It” of what the mainstream media and the markets are looking at.

Cody back in real-time here. Banks earnings as a percentage of GDP are still even elevated from those insanely elevated levels of the last decade, courtesy of the ongoing bailouts and zero interest rate and QE policies from your Republican/Democrat Regime in power and the Fed the enable. And those levels are so damaging to our economy, as you can see before your eyes. I’ve said it before and I’ve said it again, Occupy Wall Street isn’t anti-Wall-Street, it’s anti-welfare-for-Wall-Street.

About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.